British car manufacturers have three years to supply electric car batteries locally.


The Brexit agreement ensures that batteries not manufactured from 50 percent local materials will be subject to EU tariffs from 2024 onwards.

Under the Brexit free trade agreement, British car producers will have to import electric car batteries locally or from the EU for three years to prevent export tariffs, industry analysts said.

The agreement for Christmas Eve implies that all trade with the U.K. Also after the Brexit transition phase ends on Friday, the EU will be free of tariffs or restrictions in cars and vehicle parts, as long as they include adequate material from either U.K. Or factories in the EU. For the struggling car industry, the agreement was a huge relief.

Up to 70 percent of products from outside the EU or Britain would initially be permitted to contain batteries. The requirement will, however, be tightened to 50 per cent from Jan. 1, 2024. This means the procurement of U.K. battery materials. The only practical choice for the UK will be either the EU or the EU. According to Alessandro Marongiu, a trade analyst at the lobby group Society of Motor Producers and Traders, automakers can stop EU tariffs from 2024 (SMMT).

The rules mean that it will be important for the United Kingdom. Mike Hawes, SMMT’s chief executive, said automakers to secure a battery supply from the EU or the UK. “imperative that the UK secures investment in battery gigafactories and electrified supply chains at a pace,”imperative for the UK to secure investment at a pace in battery gigafactories and electrified supply chains.

A crucial concern for maintaining the U.K. was Ian Henry, whose AutoAnalysis consultancy works with a range of major automakers. A full supply chain is produced by the automotive industry, including the development of essential and chemically complicated components such as cathodes that are vital for lithium-ion batteries.

“By the mid-2020s, the U.K. will have to do much more than just assemble parts from a kit,” Henry said. “Several core battery manufacturing processes need to happen here for the U.K. to have a viable electric vehicle industry.”
The overwhelming majority of batteries used in the United Kingdom are Electric cars and EU electric cars come from East Asian companies such as CATL of China, LG Chem of Korea and Panasonic of Japan. However, billions of euros are being invested by European automakers and governments in new battery factories. According to data provider LMC Automotive, companies such as Sweden’s Northvolt and French oil firm Total are undertaking at least 10 credible efforts.

In the U.K. Despite the promise of government money and business support for the U.K., there are no fully funded proposals to start battery manufacturing in the U.K. ‘Gigafactories’ that would allow the development of large-scale batteries. This year, the government-backed Faraday Institution said that the failure to establish a U.K. By 2040, the battery supply chain could be worth more than 100,000 jobs.

Startup Britishvolt, which is the only company with public plans to develop a gigafactory in the UK, accepted the Brexit contract.

Last month, Britishvolt acquired the rights to a site in Blyth, Northumberland, where, subject to fundraising, it plans to build a factory.

The terms of the Brexit agreement match well with the ambitious plans by Britishvolt to start the manufacture of large-scale batteries by the end of 2023.

In the summer, the firm plans to begin constructing the plant.

The deal will allow the company to serve both the domestic automotive industry in the UK, a spokesman said. And car factories in Europe.


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